Big brands letting rip with the hard sell of the cup

The commercial backdrop to the rugby World Cup is the battle of the apparel companies. Millions of dollars have been invested in commercial associations with the leading teams and now the big advertising push is on.

Most television viewers will be familiar with the Nike rugby ads now showing or the adidas billboards around town.

Sometimes, despite all the investment, not everything goes right. A number of the Nike-made England jerseys ripped last weekend in the match against South Africa. Nike says it is " working to address the kit issues raised by that game".

But Nike stands by its massive financial commitment to both its technology and the sport. "The tighter design and the material used make it more difficult for opponents to tackle by grabbing the jerseys, a benefit already apparent in this World Cup," said spokeswoman Kate Meyers. "The technology is also position-specific, providing different benefits to players according to their role in the game. The apparel underwent rigorous testing, both in laboratory and on-pitch."

Despite these hiccups, the apparel companies believe their focus on rugby is paying off. After all, a Wallabies jersey retails for about $140 - significantly more than an AFL jumper at under $100. The profit margins are better in rugby - and the sales can extend around the rugby world.

The new managing director of adidas Australia, Kevin Roberts, says his company's association with the All Blacks is ringing up sales - they have achieved revenue 40 per cent higher than last year's around the globe with a 700 per cent rise in Australia. "It is expected that approximately 12 per cent of global All Black revenues in 2003 will be generated from the Australian market," he said.

The licensing rights to be associated with the All Blacks have been estimated at $20 million a year with the deal recently extended to 2011.

Roberts says branding is everything.

"The All Blacks are the world's premier rugby property and are revered across Asia, Europe and even the US to the extent that we believe global revenue generated via the All Black licensed apparel program is at least three to four times that of the Wallabies."

Canterbury International naturally believes it is on a winner with the Wallabies and will be hoping for a repeat World Cup result.

Mark Clifford, Canterbury's new marketing manager, says his company's sales will be twice that recorded in 2002 and the company has found a new market - rugby jerseys designed specifically for women that are selling at four times original budget estimates.

Nike says rugby is one of its global target markets for growth in the future. As well as England it has cemented ties with the Springboks, the French team, and with the Fijian team for footwear. "These are ongoing, long-term relationships," Meyers said.

The battle of the marketing might of the apparel companies on top of the hype that already surrounds a world cup event has meant the profile of rugby has received a special lift in the past month, especially in the traditional non-rugby union states such as Victoria.

Roberts believes this could have interesting longer-term implications for the sport's support base.

"The demographics of AFL versus rugby in Australia are what I find extremely interesting. The efforts of the AFL with regard to nationalising their code and successfully attracting supporters of varying socio-economic profiles have been successful.

"Monday morning discussions about the weekend of AFL footy occur equally amongst blue and white-collar workers and are not totally confined to the southern states.

"NSW, Queensland and ACT represent approximately half of the Australian population, however I believe over 80 per cent of Australia's registered rugby players reside in those areas.

"In contrast to AFL, rugby has traditionally been the domain of private schools in the northern states and you could be forgiven for thinking that a person's admission to interstate or international rugby fixtures was subject to wearing an item of clothing from Ralph Lauren or R.M. Williams.

"The rugby World Cup provides the ARU with their best opportunity yet to establish a closer connection with both the southern states and the common man."